When Dual-Income Becomes One-Income
A dual income starts as a safety net to build wealth while enjoying life. Still, a combined income quickly becomes part of the family budget, assigned to expenses and expected to be there. When one income suddenly disappears, plans get shaken up fast.
The good news? With the right financial strategies and a Personal CFO (PCFO) to support you, you may be able to adjust, stay in control, and keep moving toward your goals.
The financial shock: What happens when one income disappears?
Losing an income has a cascading effect on family finances.
A sudden cash flow disruption strains your outgoings. You can’t put a mortgage, childcare, or groceries on hold. The demand for monthly outgoings forces some fast pivots — pausing long-range savings contributions or using emergency savings. And if your emergency savings are a little light, you have less room to maneuver.
Beyond the urgent monetary strain, long-term wealth-building can slow down significantly. 401(K) contributions go on pause while you are not working. If it takes six months to find a new gig, you may not have time to maximize yearly contributions.
Then, there is the emotional impact of losing an income. There is greater financial responsibility when both partners work. Put that responsibility on just one person, and suddenly, there is a power shift. It may be subtle and unsaid, but it’s there; for individuals who derive a feeling of identity and fulfillment from their careers, stepping away from the workforce is, at best, unnerving.
Why does this matter more for women
While experiences vary, many women face the added difficulty of balancing vocational ambitions with caregiving responsibilities. The social norm is for women to step up for their families by stepping back from their careers; men rarely leave the workforce to care for children or aging parents. So, if the loss of dual income is for family-led reasons, women take the financial hit more than men.
Women must adjust to a one-income family without taking on all the financial risk. A planned approach makes sure that short-term requirements and long-run aspirations remain intact despite financial shifts. This is where a PCFO turns invaluable.
How a Personal CFO may help keep you on track
A PCFO service includes financial planning, tax strategy, and investment advisory services. A PCFO does more than manage your investments — they help you stay on track for your financial goals regardless of income fluctuations. By preparing for likely disruptions, a PCFO creates contingency plans that help reduce the likelihood or impact of financial strain and help families adjust to changes.
A PCFO also supports strategic tax planning. A drop in household income may offer new tax-saving opportunities, such as Roth conversions, adjusted deductions, or investment realignment. The goal is to make tax-efficient financial decisions while improving long-term wealth-building.
A PCFO may also help rebalance investment allocations to generate passive income. It is designed to support a strong financial foundation. Estate and insurance planning play a key role, making sure that policies are updated to reflect new monetary realities. For those who prioritize philanthropy, a PCFO can structure charitable contributions in a tax-efficient manner, making certain that giving goals remain intact even during a financial transition.
A PCFO is a strategic partner, making sure your financial life stays on course, no matter what disruptions arise. (Financial planning and investment strategies involve uncertainties and cannot guarantee future results.)
Practical steps to take now
You can take immediate steps to minimize the financial disruption of a downshift to a single income. First, look toward your discretionary spend. You may not have much flex in your fixed costs (e.g., car payments, utility bills), but non-essential spending (e.g., eating out, streaming services) may be a place to take up some slack while still keeping an eye on the long term.
Emergency savings can help get you through this moment. Still, if the money isn’t easily accessible, it’s not really an emergency fund: your 401(k) isn’t something you want to tap into.
Alternative income sources such as consulting, freelancing, or rental properties may help secure funds while safeguarding the core investment strategy.
Reevaluate your tax strategies considering income changes. A lower household income might open up new opportunities for tax planning, such as Roth conversions, increased deductions, or capital gains harvesting.
The bottom line: Financial confidence in any situation
Losing income can be a shock, but it doesn’t have to lead to monetary instability.
With a strong plan, planned adjustments, and the appropriate support team—including a Personal CFO—families can help manage income changes while remaining aligned with their long-term goals. By deliberately managing their finances, women can continue living a richer life—one defined not by income alone, but by the choices, freedom, and security they’ve worked so hard to achieve.
About the Author: David Langhals, CFP®, is a Lead Advisor at Brighton Jones. He helps high-income professionals and families design tax-efficient investment strategies and retirement plans aligned with their values and long-term goals.
Disclosure: Brighton Jones LLC (“Brighton Jones”) is an SEC‑registered investment adviser. Registration does not imply a certain level of skill or training. The information contained herein is for informational purposes only and is not intended as personalized investment, tax, or legal advice. All investment strategies have the potential for profit or loss. Past performance does not guarantee future results. For additional information, please refer to our ADV Part 2A.
